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All three arms of Australia's military are currently involved in two weeks of security exercises in the South China Sea, along with Malaysia, Singapore, New Zealand and the United Kingdom.

France and Australia will also conduct joint naval exercises in the important trading channel in the future.

Air Marshal Hupfeld said Australia will engage with China and other countries in the South China Sea, and explain any differences of opinion on navigation.

"We aim to keep an open dialogue with China on these sorts of issues, so that we can gain an understanding as to how they operate, that they can understand how we operate, and avoid any miscalculations that may be possible," he said.

"We'll operate in accordance with international law and the laws of the sea.

"We'll continue to make sure that any other participants in that area also understand the same elements that we do to avoid those levels of misunderstanding."